Making the Rain Fall (and Keeping It): Using Litigation Finance to Bring Your Cases With You to Solo Practice

Written by LexShares Team | Apr 4, 2017 11:48:53 AM | 0 Comments

Written by LexShares Team | Apr 4, 2017 11:48:53 AM | 0 Comments

Making the Rain Fall (and Keeping It): Using Litigation Finance to Bring Your Cases With You to Solo Practice

It's a classic axiom applicable to nature and the traditional law firm structure alike: you eat what you kill.  While this adage, in its legal context, usually alludes to the heavily results-based reward structure of mainstay law firms, it also serves as a reminder to high-achieving attorneys at firms whose institutional costs or inefficiencies serve to dilute the actual volume of "rain" that finds its way into a rainmaker's pocket.  If an attorney—or the revenue from an attorney’s own clients—pull more than a fair share of weight on a firm's ledger, an attorney and his or her clients alike might be better served by cutting unneeded overhead and going [at] it alone. 

Taking the plunge into solo practice, however, always brings with it a degree of risk.  Firms are usually prepared to fight tooth and nail to retain clients the moment they catch wind of an attorney's impending departure. Moreover, the office space, support resources, and amenities that are a matter of course for a law firm become out-of-pocket and out-of-the-gate expenses for a newly solo practitioner.  Worse yet, when the transition from law firm to solo practice happens in the midst of a big case with a contingency or hybrid engagement, few attorneys possess the financial wherewithal to handle the upfront and continuing costs of litigation all by themselves, in addition to their own operating and startup costs.  Without outside support and resources, an attorney intent on hanging out his or her own shingle may very well be forced to leave costly but meritorious and potentially lucrative cases behind.

Fortunately, an attorney intending to bring their best clients—and biggest ongoing cases—with them while embarking on a solo practice need not front the ongoing expenses of litigation alone.  Litigation finance, also known as lawsuit funding, can provide even newly solo practitioners with the capital to provide clients with top-tier litigation resources such as expert testimony and mock trials, or even help with the bills and expenses needed to tide clients over until a favorable judgment or settlement can be obtained.  Litigation funders provide capital in exchange for the right to a portion of a lawsuit’s proceeds.  This allows the costs of litigation to be passed on directly to clients, but in a way where those costs only become payable if clients prevail or reach a settlement.  If a case yields no proceeds, neither attorneys nor clients owe litigation funders anything. 

Litigation funders like LexShares make it easier for attorneys transitioning to solo practice to bring clients and ongoing cases along with them.  LexShares allows attorneys regardless of their individual resources to help their undercapitalized clients finance lawsuit-related expenses by tapping into a wider and deeper reserve of accredited investors.  In this way, Lexshares not only makes it easier for clients to achieve the full and fair recoveries they deserve, but enables attorneys greater flexibility and opportunities to provide their clients with continuous and uninterrupted service while make the transition from firm to solo practice. With litigation funding from LexShares, solo practitioners and their clients need not fight or fund their legal battles alone.

 

Topics: Financing Lawsuits, Litigation Funding, Litigation Finance